A question that we frequently see is, "How does PayPal protect me as a seller?" That's an excellent question. It's also my opinion that the answers are very important because knowledge is one of the best defenses against loss.
The first way that we protect sellers is with Seller Protection. That link is definitely recommended reading for anyone selling through PayPal. An understanding of the coverage can help you take the steps needed to stay protected.
But what about ineligible transactions? What about intangible items and services? What about claims of Not as Described?
Those are also very good questions. We want you to know that PayPal is always working to protect you and your business, by creating a safer selling environment, fighting chargebacks, and helping you understand and mitigate your risks.
Safer selling environment - We employ a variety of tactics and technologies to help keep you protected when you're doing business online using PayPal. We offer industry-leading data encryption, a team of over 2,000 fraud-fighting specialists, and a set of highly effective anti-fraud risk models and detection techniques.
Fighting chargebacks - PayPal employs an entire department full of people who handle all of the costly and time-consuming details of fighting chargebacks. Their sole job is to advocate for sellers in disputes with credit card companies. Not every battle can be won, but we're there in the trenches fighting for you. The knowledge and experience that PayPal brings to bear in this process increases your likelihood of winning significantly when compared to the success rates of merchants who dispute directly with the credit card company themselves.
Tips for sellers - Be aware of your risks and how to mitigate them. Knowledge is power. Read about How to run a more secure business. These are some seriously helpful tips to keep you in control of the situation.
Here are some more resources to help you stay informed:
Protection for Sellers - This section of the US PayPal User Agreement is a no-nonsense summary of what is and is not covered by Seller Protection. For other countries, go to the bottom of any PayPal page and click Legal Agreements > select country > User Agreement > Protection for Sellers.